The Federal Reserve is expected to lower interest rates in September 2025, and a lot of buyers are wondering if they should wait before making a move. Lower rates can mean lower monthly payments, but that doesn’t mean you should hit pause on everything.
Here are the top mistakes to avoid while you wait — and what you should be doing instead.
1. Don’t Switch Jobs (If You Can Help It)
Lenders like stability. If you change jobs before your loan is finalized, it could slow down—or even derail—your mortgage approval. Even a better-paying job can cause delays if your income type changes (for example, from salary to commission).
2. Don’t Open New Credit Accounts
Applying for a new credit card or loan right now can hurt your credit score. Since your credit score affects your mortgage rate, keep things steady until after you close on your home.
3. Don’t Wait for the “Perfect” Rate
Yes, rates may dip after September, but we’re not going back to the super-low 3% rates we saw a few years ago. Waiting too long could mean missing out on a great home that’s available now.
4. Don’t Focus Only on the Rate
The interest rate matters, but so do other loan details like closing costs and whether your lender offers a “float-down” option (which lets you grab a lower rate if it drops before closing). Sometimes the overall package matters more than the rate alone.
5. Don’t Overstretch Your Budget
With all the talk about falling rates, it’s tempting to shop for a bigger, more expensive home. But remember: just because you can borrow more doesn’t mean you should. Comfort and long-term affordability matter more than bragging rights.
Where Rates Are Now (August 2025)
- The average 30-year fixed mortgage rate is around 6.58% — the lowest this year.
- Analysts think the Fed will likely cut rates by 0.25% in September. That could help, but it probably won’t be a huge drop.
- Demand may rise after the cut, meaning more competition for buyers.
What You Can Do Now to Get Ready
| Step | Why It Helps |
|---|---|
| Get preapproved | Shows sellers you’re serious and locks in a rate. |
| Check your credit | A higher score can save you thousands. |
| Compare loans | Look at fees, terms, and perks—not just rates. |
| Stay within budget | Prevents future financial stress. |
| Work with an agent | Helps you move fast when the right home appears. |
Bottom Line
Waiting for a lower rate can be smart—but only if you’re prepared. If you wait too long without getting your finances ready, you could lose out when the market gets busy.
The Truth & Trust Real Estate Team can guide you through this moment so you’re ready to act, whether rates drop a little—or a lot.
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